This article provides the results of an exploratory study that investigated the effect of Capability Lifecycle Path on attaining effective adaptation through innovation. Based on Miles and Snow (1978), an empirical study was conducted to explore whether performing firms are those that indicate consistency within the strategy, process, structure and Capability Lifecycle Path arrangement. The basic premise of this study is adaptability for sustainability, where firms go through adaptation cycles through Business Model Innovation would perform well when they are able to consistently create value and effectively manage adopted business models, or denoted as Business Model Effectiveness. Using data obtained from seven Indonesian firms in various industries, PLS Analysis was conducted to investigate the relationships between Business Strategy, Firm Resource Configuration, Capability Lifecycle Path and Business Model Effectiveness. Findings indicated that Capability Lifecycle Path, or decisions made on the development of capabilities at the mature stage, is an important part of the series of decisions made during adaptation to ensure performance.

The starting point of this study is the phenomenon termed misleading brand placement, a condition found where the brand placement in a movie depict the brand in a time where the brand has not yet exist, providing the brand an older age. As the brand used in the brand placement is a brand with high brand equity, the combination of older age and high brand equity is suspected to give a higher evaluation of the brand. To test these suspicions, three experiments were conducted to see the influence of consumer knowledge of the misleading brand placement, brand equity and movie liking toward the brand attitude. The results show that when consumers do not have knowledge of the misleading brand placement they are not affected by misleading brand placement; but when they know of the misleading brand placement, brand attitude tend to be still be high when brand equity is high; and finally, when brand equity is high, a positive movie liking can further strengthen brand equity in reducing the negative effect of the misleading brand placement.